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In an ever-evolving automotive landscape, UK drivers are increasingly turning towards non-annualised policies (NAPs) to insure their vehicles. This shift is highlighted in a comprehensive Uswitch article that delves into consumer perceptions of NAPs, revealing a growing appreciation for their flexibility, cost-effectiveness, and practicality. This blog post unpacks the key findings from the article shedding light on why these flexible and temporary car insurance options are gaining traction and how they’re changing the face of motor insurance in the UK.

Graphic panel showing that 5.4 million UK customers bought non-annulaised insurance in the past 2 years

Key Findings

  • Around one in six (15%) of consumers have purchased a non-annualised policy (NAP) during the past two years, suggesting a current market of about 5.4 million UK drivers. 
  • The age group of 30-39 has the highest average use of NAPs, at 27%
  • The average cost of a temporary car insurance policy between October 2022 and September 2023 was £73.80.
  • In the same period, consumers aged between 30 and 34 most commonly used temporary car insurance, accounting for over 19% of the policyholders.
  • Drivers aged 17-20 are charged the most expensive temporary car insurance policies, costing £150.05 on average. 

What are Non-Annualised Policies?

So, what are Non-annualised policies and how do they differ from the conventional car insurance you may be used to? NAPs offer a modern twist on traditional car insurance. They break away from the standard yearly coverage model, offering drivers the freedom to choose from temporary policies, subscription-based models, or pay-as-you-go (PAYG) insurance. All of these options cater to a variety of needs, from borrowing a friend’s car for a weekend, to insuring a vehicle for just a few weeks at a time. Let’s look at these three types of insurance in turn:

Temporary car insurance, otherwise known as day insurance or short-term car insurance, pretty much does what it says on the tin; you buy a short policy that typically covers you to drive for between 1 hour and several weeks. This type of insurance is often used by people who just want to borrow a car for a short period, test drive a vehicle or get a new car home after purchase. 

PAYG insurance is particularly suited for drivers who use their vehicles sporadically, offering a cost-effective solution where you only pay for cover when you actually need it. This sort of policy might allow for significant savings compared to traditional annual policies.

On the other hand, subscription insurance provides a more continuous coverage option but retains flexibility, allowing users to start, stop, or modify their coverage monthly, without the long-term commitment and penalties typical of conventional insurance contracts. This model is especially appealing to those with changing circumstances, such as frequent travellers or temporary residents, who require regular access to a vehicle at different times throughout the year.

The primary appeal of NAPs lies in their ability to accommodate the changing dynamics of vehicle usage, particularly in a post-pandemic world where many people are working from home more frequently, or are conscious of their environmental impact. 

The most popular reason for choosing a NAP is the need to borrow someone else’s car, highlighting the demand for short-term insurance solutions that are not adequately met by traditional annual policies.

Growing Awareness and Adoption

Regarding temporary car insurance specifically, 14% of those surveyed were very familiar with it, while just under half (49%) were somewhat familiar. A little over one in ten (12%) of respondents were not aware of temporary car insurance at all. Overall, temporary car insurance was the most recognizable type of NAP, with almost two-thirds (63%) of people familiar with it and only 12% unaware of it.

Graphic panel showing 63% of customers in the UK are aware of temporary car insurance

Subscription insurance was relatively unknown among those surveyed, with only a third (33%) having some or significant familiarity, while nearly half (45%) did not know what it involved. 

For pay-as-you-go (PAYG) insurance, awareness was even lower; 28% of respondents had some level of familiarity, but 35% were completely unaware of what PAYG insurance involves.

Why use temporary car insurance?

Graphic showing temp insurance by use case in percentage terms
  • Using Someone Else’s Vehicle (38%): The top reason, involving borrowing a vehicle from a friend or family member where rental car insurance does not apply.
  • Buying a New Vehicle (28%): Commonly for driving the newly purchased car home, covered by temporary or pay-as-you-go insurance.
  • Reduced Need to Drive (22%): Less frequent driving reducing the necessity for a full annual insurance policy.
  • Cost Considerations (20%): The expense being a motivating factor in choosing NAP products.
  • Low Mileage Drivers (16%): Those who drive minimally and don’t require year-round insurance.
  • Gig Economy/Short-Term Driving Contract (5%): Involving rideshare services and delivery jobs, affecting a smaller percentage of respondents.

Who uses non-annualised policies?

NAP users tend to be younger, more tech-savvy, and reside in urban areas, indicating that these policies are especially appealing to a modern, mobile, and environmentally conscious demographic. Additionally, the research notes that these users are more likely to have children and higher incomes, which may correlate with a need for greater flexibility in managing family logistics and budgets.

Data reveals that the age group of 30-39 has the highest average use of non-annualised policies, at 27%. This is followed by both 40-49 and 50-59, each accounting for a fifth (20%) of all NAP users. 

  • Younger Drivers (18-29): This age group is 3.5 times more likely to use a NAP product, such as temporary car insurance.
  • 30-39 Age Group: More than twice as likely to use a NAP product compared to other age groups.
  • Decrease with Age: The likelihood of using a NAP product decreases after the age of 60; 16% of those over 70 hold annual policies, but only 6% use NAP products.
Graph showing non-annual policy usage by age group in the UK


As the motor insurance market continues to adapt to the needs of modern consumers, non-annualised policies stand out as a flexible, cost-effective solution that aligns with contemporary driving habits and lifestyle choices. The research into consumer attitudes and market dynamics underscore the potential for growth in this part of the insurance market, promising a shift towards more personalised and adaptable insurance options in the years to come.

In summary, the rise of non-annualised policies is not just a trend, but a reflection of broader changes in society – changes that demand a more flexible approach to everything, including car insurance. As more consumers recognise the benefits of NAPs, the landscape of car insurance is set to evolve, paving the way for innovations that could redefine how we think about insuring our vehicles.

If you want to buy a Zixty short term insurance policy it’s simple to do. Just visit our quote page, or download our app (Apple AppStore and Google Play). Enter a few details, and voila, after we’ve done a few checks you should be ready to get going.